Senate probes rising data costs, urges government action

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Senate
Senate

The Senate has launched an investigation into the rising cost of airtime and data services, seeking to uncover the root causes and propose solutions for a more sustainable and business-friendly telecommunications sector.

The Senate Committee on Communications will spearhead the probe, while the Senate has also urged the Federal Government to address broader business challenges in the ICT and telecom sectors to prevent further cost hikes that could stifle economic growth.

Additionally, lawmakers have directed the Ministry of Communications, Innovation, and Digital Economy to engage with telecom providers to review recent price increases and establish a policy framework for affordable internet services.

Lawmakers lamented that Nigerians now struggle with exorbitant prices for internet services, electricity, and digital TV subscriptions, making daily life increasingly unaffordable.

A key resolution is the establishment of government-supported tech hubs nationwide, offering free or subsidized internet access to young entrepreneurs, students, and innovators.

These decisions followed a motion sponsored by Senator Asuquo Ekpeyong (Cross River South) during Wednesday’s plenary session. Ekpeyong expressed deep concern over the 200% surge in data costs, which disproportionately affects millions of Nigerians—especially young people who depend on the internet for education, business, and innovation.

“Young Nigerians are fully engaged in the digital economy, utilizing the internet for freelancing, e-commerce, digital marketing, content creation, fintech, and other ventures,” he stated. “The sharp increase in data costs threatens their economic survival.”

He emphasised that fibre-optic internet remains unaffordable, forcing most Nigerians to rely on mobile networks for access. The sudden spike in data prices, he argued, limits opportunities and restricts access to essential digital services.

Ekpeyong dismissed the telecom operators’ justifications for price hikes—such as high operational costs and exchange rate fluctuations—as inadequate, arguing that businesses should not pass their burdens entirely onto consumers.

He outlined the key factors driving Nigeria’s high cost of doing business, to include infrastructure, Unreliable power supply, Multiple taxation and excessive regulatory charges.

Others, according to him, are security concerns, increasing insurance and operational costs and high cost of diesel and alternative energy sources.

He called for immediate government intervention to reduce the burden on consumers, particularly young Nigerians, who are at the forefront of the country’s digital economy.

Other lawmakers echoed concerns over frequent price increases in digital services, including electricity tariffs and pay-TV subscriptions.

Senator Victor Umeh criticised the lack of consumer protection, stating: “We live in a situation where citizens have no means of seeking redress. DSTV has hiked tariffs three times within a short period, and electricity bills disappear within minutes. Nigerians are suffering.”

Senator Sadiq Sulaiman Umar emphasized that young Nigerians, the most productive segment of the population, heavily rely on affordable data for work and education.

“The rising cost of these essential services is unbearable. We must act to ensure fair pricing for all Nigerians,” Senator Umar stated.

In his closing remarks, Senate President Godswill Akpabio commended the motion’s sponsor, emphasizing the critical role of affordable internet in entrepreneurship, job creation, and national development.

The motion was widely supported, with senators stressing the need to curb monopolistic practices and make telecommunications business-friendly. If implemented, these measures could provide relief to millions of Nigerians struggling with high living costs.

“This motion, when implemented, will not only benefit young people but will also prevent businesses from collapsing due to high costs,” he said.

The Senate’s resolutions signalled a major push for government intervention to ensure fair pricing, digital accessibility, and economic sustainability in Nigeria’s telecommunications industry.

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